Michael Zuber's Advice for New Investors In Today's Market

In this short episode, Michael Zuber shares his advice for new investors in todays changing market.    ---  Transcript   Emil: Hey everyone welcome back for another weekend wisdom episode of The Remote Real Estate Investor. My name is Emil Shour. And in today's weekend wisdom, we're talking with Michael Zuber again, who if you guys have been listening to the show for a while, you're probably familiar with him. But if not, he is the author of a book called One Rental At A Time. He also has a YouTube channel by the same name, putting out daily videos. It's one of my favorite books, one of my favorite YouTube channels, highly recommend both of them for both new inexperienced investors. So if you guys enjoy this one.     And so for this episode, we asked Michael, given the current market and economic environment, what are some tips he has for new investors? So let's hear Michael's answer to that question here.   Michael: So when I would tell a new investor in today's market, you have to be very careful. What I would tell folks today is you need to really understand where your market is going not where it's at. So this is what I mean by that. So is your market going to grow or shrink in the next 12 to 24 months? I think without question, there are some markets San Francisco being the most obvious is going to shrink. New York City going to shrink any market that is very vertical and has very shoe box and is freaking unaffordable, is going to lose add on top of that high taxes like New York and California recipe for disaster. That said, there are some markets that are the complete opposite, they are going to win, they are going to attract people.   And once you get to do in this market, when you really understand that is you can invest ahead of that. Now most people when I say this, they think Texas, I would tell you Texas has already had the time in the sun, I think somewhere else, right? There were so many other markets that are going to get net population growth. And here's the wrinkle and why I don't think Texas is great. I just think it's already been chosen. What you need to find is a market that wasn't ready, what market didn't have new development, what market are all these people moving into, and there hasn't been a new housing construction of size for a decade.   That is when existing home sales explode higher. That is when rent explodes higher. That's how we can have a national appreciation of 15%. That was reported in September, I have never seen national appreciation of 15% in a month, there are just some markets that weren't ready for the flood of people from high tax areas like California in New York. And if you can invest in one of those markets, man, you are going to have a good couple of years run. But if you're in a hot market that's going to lose people, man, there are people in San Francisco that are just flat out going to lose their properties. And they're going to start with apartments, right rents in San Francisco are down 30% already, if you bought an apartment in San Francisco in the last two years, you are done. You're giving that back to the bank, just how cap rates and groceries, just how it all works. Your equity is gone. You're underwater that you're technically in default.   So there are cities that are going to lose. So if you're investing in one of the ones that's going to be net migration out, might want to sell certainly don't want to buy. But I would tell folks there are going to be they're going to be generational wealth created in the next couple of years. If you can invest in front of the cycle of population growth that's coming. It's going to be massive in my opinion.   Emil: All right, thanks again to Michael Zuber for hopping on the weekend wisdom to share a little nugget there. And as always, we'll catch you on the next one. Happy investing